CCP Client 'CO329'
Railroad Support Services, Environmental Remediation, Emergency Response
and Industrial / Mechanical Contracting Firm
Clayton Capital Partners is pleased to exclusively represent CO329 (the “Company”) in the sale of its business. Located in the Intermountain West, CO329 is a Railroad Support Services, Environmental Remediation, Emergency Response and Industrial / Mechanical Contracting Firm with public and private sector clients located in the western two-thirds of the U.S.
• Self-Perform Work – The Company self-performs approximately 75% of its work. This distinction gives the Company an advantage over many of its competitors who primarily use subcontractors. This self-performance allows the Company to consistently meet client expectations as well as have a greater control over the execution of projects and the health and safety of its workers.
• Invitation Only Bidding – The Company generates a significant volume of work from the various divisions of its top client – which is by invitation only, not the typical bidding process. The Company has earned its spot on the invitation only list through past performance, safety, financial performance and overall competence. There is a strong vetting requirement to be placed on the invitation only list, and most companies do not qualify.
• Safety Culture – Throughout the years, CO329 has always emphasized the importance of safety. It values not only the safety of its employees, but also the health and safety of its clients, employees of other firms working on projects and the public. The Company has created a culture incorporating small crew sizes, detailed procedures, training programs and actively promotes safety on a daily basis, which has led to extremely low insurance and workers compensation rates. These low rates allow the Company to bid competitively.
• Opportunities for Growth – The Company has a variety of growth opportunities. The business can grow by increasing industrial / mechanical work (such as high-pressure piping), expanding its client base, investing in marketing and adding additional project managers to increase participation in its current markets. With the implementation of these strategies, CO329 could experience considerable scale.
| CO329 Financial Highlights | |||||
| Internal LTM Ended 10/31/2020 |
Reviewed Year Ended 12/31/2019 |
Reviewed Year Ended 12/31/2018 |
Reviewed Year Ended 12/31/2017 |
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Net Sales
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$16,740,209 | $15,910,365 | $16,136,216 | $14,531,613 | |
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Adjusted EBITDA
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$3,258,657 | $1,898,388 | $1,885,253 | $2,665,259 | |
| Adjusted EBITDA % | 19% | 12% | 12% | 18% | |
The undersigned hereby agrees:
That all information, data and materials disclosed or furnished (herein called the Information) by Clayton Capital Partners Acquisition Candidate CO329 (herein called the Company) will be maintained strictly confidential and that, in consideration for such disclosure, no use of the Information will be made by any signing party, or employees of such party, other than for evaluation purposes, on a strictly confidential basis.
It is understood that disclosure of any of the Information, including the possibility that the Shareholders may consider sale, disclosure of the current status of the Company, or disclosure of any information to customers, vendors, competitors, or employees of the Company would cause serious financial damage to the Company and/or its affiliates.
The undersigned also agrees that, for the term of this agreement, they will not solicit for employment any management-level employee, executive-level employee, or any employee of the Company with whom the undersigned came into contact with as a result of the proposed transaction. Nothing herein shall preclude the undersigned from hiring any employee who responds to a general solicitation so long as it is not targeted at the Company or its employees (including through the use of search firms) or who contacts the undersigned of their own accord.
The undersigned agrees not to copy, duplicate, disclose or deliver all or any portion of the Information to a third party or permit any other third party to inspect, copy or duplicate the same except those parties deemed necessary by the undersigned to evaluate the possible transaction (including agents, advisors, affiliates, accountants, attorneys, consultants, and lenders). It is understood that the undersigned may disclose Information to only parties who (i) require such material for the purpose of evaluating a possible transaction and (ii) are informed by the undersigned of the confidential nature of the Information and agree to be bound by the terms hereof. The undersigned further agrees to be responsible for any breach of this agreement by the above mentioned parties, and that these parties will not use any of the Information for any reason or purpose other than to evaluate a possible transaction or in any way detrimental to the Company.
This shall not, however, prevent the undersigned from disclosing to others or using in any manner:
- Information which has been published and has become part of the public domain other than by acts or omissions by the receiving party
- Information which has been furnished or made known to the undersigned by third parties as a matter of right without restriction of disclosure
- Information which the undersigned can show was already in its possession at the time it entered into this Agreement and which was not acquired directly or indirectly from the Company, their representatives, its employees or their representatives, or
- Information which is independently developed by the undersigned or its representatives.
This agreement shall remain in effect for a term of two years from the execution date hereof and upon request, the receiving party will promptly return or destroy all data and materials furnished by the Company and destroy any internal analyses and/or workpapers related to the evaluation of the Company. The undersigned shall be permitted to retain copies of Information for the sole purpose of complying with applicable laws and not be required to destroy electronic Information saved for backup and bonafide record retention policies in the ordinary course of business. Any such retained Information shall remain subject to the confidentiality obligations of this agreement for so long as such information is retained.
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